China fired back at the United States on Friday, announcing a 34% tariff on all U.S. imports in retaliation for President Donald Trump’s recent tariff hikes.

The new Chinese tariffs, set to take effect on April 10, match the 34% rate imposed by the U.S. on Chinese goods earlier this week, signaling a sharp escalation in the trade war between the world’s two economic powerhouses.

The announcement from China’s Ministry of Finance came just days after Trump unveiled a broad tariff plan on Wednesday, which includes a 10% baseline tariff on all U.S. imports, with steeper rates targeting specific nations: 34% on Chinese goods, 20% on European Union products, and 24% on Japanese imports. The U.S. measures are scheduled to begin April 5, with the higher rates kicking in on April 9.

China’s Ministry of Finance condemned the U.S. actions, stating they “gravely violate World Trade Organization rules” and amount to “typical unilateral bullying.” The ministry accused Washington of undermining China’s legitimate rights and threatening global economic stability, urging the U.S. to reverse the tariffs and pursue “fair and respectful dialogue” to settle trade disputes.

The tit-for-tat tariff exchange sent shockwaves through global financial markets. On Thursday, U.S. stock indexes plummeted, with the Dow Jones Industrial Average shedding 1,200 points, a 2.8% drop. The S&P 500 fell 3.2%, while the Nasdaq Composite took a steeper hit, declining 4.3%. Tech giants like Apple, Nvidia, and Tesla bore the brunt of the losses, as their reliance on international supply chains came under threat.

Economists are sounding the alarm over the potential fallout. JPMorgan now estimates a 60% chance of a U.S. recession, calling the tariffs the largest tax increase since 1968. The International Monetary Fund has also warned that the escalating conflict could “seriously damage” global economic growth, with disruptions to supply chains and rising costs looming large.

As the April deadlines approach, the international community braces for the possibility of a full-blown global trade war, with analysts predicting far-reaching consequences for businesses and consumers worldwide. Neither side shows signs of backing down, leaving markets and policymakers on edge as the standoff intensifies. (ILKHA)